Answer #1, 2, 3

Waterloo Storage Products makes a four-drawer plastic storage cabinet on casters meant for use in garages and workshops. Each cabinet sells for $35. Data for last year's operations follow: Units in beginning inventory Units produced 25, 000 Units sold 21, 500 Units in ending inventory 3, 500 Variable costs per unit: Direct materials $ 8 Direct labour 10 Variable manufacturing overhead Variable selling and administrative Total variable cost per unit 24 Fixed costs: Fixed manufacturing overhead $ 75, 000 Fixed selling and administrative 110, 000 Total fixed costs $185, 000 Required: 1. Assume that the company uses variable costing. Compute the unit product cost for one storage cabinet. Unit product cost 2. Assume that the company uses variable costing. Prepare a contribution format income statement for the year. (Do not leave any empty spaces; input a 0 wherever it is required.) Variable Costing Income Statement Variable expenses: Variable cost of goods sold: 0 oo Fixed expenses: $ 3. What is the company's break-even point in terms of units sold? (Round your answer to the nearest whole number.) Break-even units units sales